It appears that cash is becoming as rare as a unicorn sighting these days. People are swiping and tapping away like their fingers are engaged in a furious game of whack-a-mole with debt. Rossman continued, “Population growth … A lot of people are close to the edge. I mean even a lot of upper-income households are living paycheck to paycheck.” Well, if even the “upper-income households” are struggling to keep up with their avocado-toast-and-artisanal-coffee-fueled lifestyles, then we’re all in this together, folks.
But hey, let’s not dwell on the negatives. The glass-half-full folks over at Bank of America have a silver lining for us. They found that 53% of people are taking the responsible route and paying off their credit card balances regularly. Hooray for them! Maybe they’re onto something here – like using actual money they already have to buy things. Revolutionary, I know.
Of course, there’s always that one friend at the party who ruins the fun. Enter LendingTree analyst Matt Schulz. He had to rain on the parade by pointing out that more people are dipping into their 401k retirement accounts.
As Schulz so eloquently put it, “The opportunity cost for that is so great because that’s money that’s not going to be able to compound interest for 25-30 years.” Well, Matt, you sure know how to make retirement sound like a never-ending vacation that we’re all missing out on.
In the grand scheme of things, the credit card debt milestone might not be too surprising, given the way we swipe our way through life’s problems. But hey, let’s not forget that life is all about balance, and that goes for both our financial statements and our yoga poses.
So, whether you’re a savvy swiper or a responsible balance-payer, just remember that every credit card swipe is a tiny step towards that trillion-dollar dream and a trillion dollars is a lot of zeros, and who needs all those zeros weighing down our bank accounts? So, let’s swipe wisely, pay off those balances, and maybe, save a dollar or two for that retirement that’s going to be the best thing since sliced bread.